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In this May 1, 2019, file photo, specialist John Alatzas, left, and trader Michael Milano work on the floor of the New York Stock Exchange.

Fresh market jitters over the possibility of an escalation in the costly trade war between the U.S. and China pulled stocks broadly lower on Wall Street Monday.

President Donald Trump threatened over the weekend to raise tariffs on goods imported from China. Trump complained that the trade talks between the two countries are moving too slowly.

Stocks slumped early but then gradually recovered a good portion of the losses, a sign that investors' hopes of a trade deal haven't dimmed entirely. China remained committed to sending a delegation to talks later this week in Washington despite the Trump threat, and some investors appeared to conclude that the president's warning was just more high-stakes posturing.

However, after the market closed, U.S. Trade Representative Robert Lighthizer said that the tariff increases that Trump threatened to impose on China would go into effect 12:01 a.m. Eastern time Friday. He did say negotiations would resume Thursday in Washington.

China Warns Trump of Potential Retaliatory Tariffs

China warned that if President Donald Trump continues to escalate the trade war, it will retaliate by hiking tariffs on U.S. beef, seafood and thousands of other goods totaling $60 billion.

(Published Friday, Aug. 3, 2018)

The ratcheting up of the trade rhetoric from Washington came after the U.S. and China sent signals in recent months that talks on resolving the dispute were progressing.

Hopes for an accord between the world's two largest economies contributed to the big run-up in stock prices in the U.S. and China so far this year. The S&P 500 and Nasdaq hit all-time highs last week.

However, investors have gotten their hopes up that the trade issue was close to being resolved a number of times in recent months, only to be disappointed when new flare-ups arose.

The U.S. and China have raised tariffs on tens of billions of dollars of each other's goods in their dispute over U.S. complaints about Chinese technology ambitions.

Trump turned up the heat Sunday when he threatened to raise tariffs on imports from China to 25% from 10%. He also said he would impose tariffs on another $325 billion in imports from China, covering everything the country ships annually to the United States.

Tariffs currently in place have already raised costs on goods for companies and consumers, and disrupted trade in goods from soybeans to medical equipment.

Carson Won't Say If He'd Let Grandmother Live in Public Housing

Secretary of Housing and Urban Development Ben Carson was asked Tuesday by Rep. Ayanna Pressley, D-Mass., if he would let his grandmother live in public housing. Their heated exchange came during a hearing of the House Financial Services Committee.

(Published Wednesday, May 22, 2019)

Many sectors of the market posted declines Monday, including technology, industrial and materials companies, retailers and banks.

Qualcomm, which gets 64.7% of its revenue from China, according to the data provider FactSet, fell 1.2%. Broadcom slid 1.3% and Apple dropped 1.5%.

Shares of Chinese companies that trade in the U.S. also fell. J.D.com slid 4.5%, while internet search company Baidu dropped 1.5%.

Investors have been digesting mixed reports about the U.S.-China trade talks for months and have largely discounted concerns about a failure in negotiations. The broader market has been posting gains all year on encouraging economic growth and solid corporate earnings results.

Elsewhere in the market, Boeing fell 1.3% after it disclosed that it did not warn airlines about a faulty safety alert until after one of its planes crashed.

The sensors malfunctioned during an October flight in Indonesia and another in March in Ethiopia, causing software on the plane to push the nose down. Pilots were unable to regain control of either plane and both crashed, killing 346 people.

Energy futures closed mostly lower. Benchmark U.S. crude rose 0.5% to settle at $62.25 per barrel. Brent crude, the international standard, gained 0.6% to close at $71.24.

Ala. Lawmakers Pass Bill Banning Virtually All Abortions

Alabama lawmakers have approved a bill banning virtually all abortions, including for women impregnated via rape or incest, making the act a felony at any stage of pregnancy with no exceptions. The bill now heads to Alabama Governor Kay Ivey to sign.